Apple cuts iPhone 14 Plus production by up to 90% on back of weak demand

[midian182]

In brief: It seems the iPhone 14 Plus isn't proving as popular as Cupertino had hoped. Following earlier reports that demand for the larger version of the non-Pro handset was low, we're now hearing that Apple has instructed two suppliers to lower production by 90%, less than two weeks after the phone debuted.

According to The Information, citing supply chain sources, Apple has instructed at least one manufacturer in China to immediately stop production of iPhone 14 Plus components while the US company's procurement team reevaluates demand.

The publication also reports that two downstream Apple suppliers in China that rely on the parts and assemble them into larger modules are also cutting their production by 70% to 90%. These suppliers are said to be the only ones that make the specific module for iPhones.

Apple's decision has reportedly impacted Pegatron, its iPhone assembly partner. The China Times writes that the company announced a new recruitment drive on October 12, but it reversed this decision three days later, announcing the suspension of the recruitment notice in the wake of Apple cutting iPhone 14 Plus production.

Apple only launched the iPhone 14 Plus on October 7, less than two weeks ago, while the iPhone 14 was released on September 16. There were previous reports that Apple had instructed iPhone 14 suppliers to cut production by as many as six million units in the second half of 2022. iPhone 14 sales over the first three days of availability were down 11% in China compared to its predecessor a year earlier, partly due to the country's current economic woes. There have also been reports of Foxconn cutting production of the iPhone 14/Plus in favor of the Pro models.

Despite many of today's consumers being fans of phones with larger screens, it seems paying at least $899 for a 6.7-inch iPhone 14 Plus when they could get an iPhone 14 Pro for $100 more—or a 14 Pro Max for an extra $200—is too big an ask. However, all the reports stress that Apple will still release an iPhone 15 Plus next year.

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https://www.techspot.com/news/96388-apple-cuts-iphone-14-plus-production-up-90.html

 

[VitalyT]

Apple begins to understand the meaning of "quantity doesn't make up for quality". That, plus the lack of creativity, or the draining of.

I, for one, was sure to upgrade my iPhone 11 Pro this time, but when 14 came out, with all its new problems, not anymore, better luck next year, perhaps?

 

[neeyik]

Apple begins to understand the meaning of "quantity doesn't make up for quality".

Not entirely sure they do. 2007 to 2012: one new model per year. 2013 to 2015: two new models per year. 2016 to 2019: three new models per year. 2020 to present: four new models per year.

This cut back in production will just be a temporary thing.

 

[AlexIL]

Apple a company that learns quckly. Hopefully they got the message that pulling out what sells good substituting it with heftier priced stuff doesn't mean sales. Expecting to see iPhone 15 Mini in their lineup next year.

 

[Uncle Al]

I'll stick with my old $250 phone for a few more years. It does everything I need, has an EXCELLENT camera & resolution, and best of all .... it's been paid for, for years!

 

[FaTaL]

Because its a same godddamn phone as the 13.....

 

[Thatsdisgusting]

So it's not even about the size, just a sheep herd buying Pro Max because it has the biggest pricetag? Makes them feel better than the others...

 

[Theinsanegamer]

Because its a same godddamn phone as the 13.....

That really is t stopping the pro max though.

I think the biggest issue is that the pro max and the plus are basically the same phone. They're only $180 apart for the same storage level, but the pro max has better specs including the a16 chipset, and better cameras. The 14 plus doesn't offer enough to justify being so close to the max. If it had the a16 I think it'd be a better deal, or if it was $300-400 cheaper, or had a battery much closer to 5000 mah. Something.

I know that if it'd had a noticeably larger battery then the 13 pro max it would have been a day 1 buy for me. As it stands I'll try to get another year out of my moto and see what the 15 brings.

 

[Theinsanegamer]

So it's not even about the size, just a sheep herd buying Pro Max because it has the biggest pricetag? Makes them feel better than the others...

Well, there's the fact you don't save that much going with the plus, the pro max has the 120hz screen, it gets longer battery life then the 14 plus, and since it has the a16 it will get one year longer software support, which is essential on apple products.

 

[WhoCaresAnymore]

A well known quote comes to mind. "It's the Economy, Stupid".

 

[Hexic]

Because its a same godddamn phone as the 13.....

And the 12, and the 11, and the XS, and XR, and the X.....

 

[Plutoisaplanet]

Well, there's the fact you don't save that much going with the plus, the pro max has the 120hz screen, it gets longer battery life then the 14 plus, and since it has the a16 it will get one year longer software support, which is essential on apple products.

The differences are overstated, including the battery life and processor. The refresh rate isn't going to matter to most people, and the camera differences aren't either (though these two actually are distinguishable between the two phones). The longer software support matters to people who'll keep the phone for 5 years, which is nowhere close to a majority of people buying this phone. So as long as you don't care about having a 60Hz screen or a camera that's better in super unfavorable conditions, then spending the extra $200 is actually a waste of money.

The reason Apple is cutting production is because they always have the maximum demand right when a phone comes out. I'm pretty sure this has been underreported in previous years. I don't know the average reduction of production post-product ramp as a percent of initial production, but I'm all ears.

Apple would also benefit greatly by producing an excess of phones upfront to prevent future supply chain issues and lock in prices as inflation continues to affect costs. It's not like they have anything else to spend their cash on, so why not create a buffer of supply in case if there are further lockdowns in China?

 

[opckieran]

Not entirely sure they do. 2007 to 2012: one new model per year. 2013 to 2015: two new models per year. 2016 to 2019: three new models per year. 2020 to present: four new models per year.

This cut back in production will just be a temporary thing.

I’d argue the 14 launch was ONE new model, not four. Only the Pro models got a new SOC, and personally I’m not convinced iterative differences such as the cameras or screen size options should be considered separate models. It needs to be a bit more comprehensive in my opinion.

 

[Salty Maud]

Plus will keep struggling in the future too if they keep the current price and spec structure. Why buy 14 plus when 13 pro max is better at very similar price?

Plus is a bad model. I wish they kept the mini - even if it isn't the best selling iPhone, it's something unique in the age of phablets that has a certain audience it appeals to. With mini gone, my next phone will not be another iPhone.

 

[bviktor]

Apple a company that learns quckly. Hopefully they got the message that pulling out what sells good substituting it with heftier priced stuff doesn't mean sales. Expecting to see iPhone 15 Mini in their lineup next year.

Clearly, you haven't seen ANY sales charts. The minis don't sell, period. It's not Apple's fault, that's customer demand (lack of).

 

[Salty Maud]

Clearly, you haven't seen ANY sales charts. The minis don't sell, period. It's not Apple's fault, that's customer demand (lack of).

The thing with mini buyers (myself included) is that if you take that away, you're not going to convert us into iphone/pro/plus/promax buyers. You're just losing the mini customers altogether. Mini may not have topped any sales charts, but it taps into a largely unique customer base that actually wants reasonably sized phones. None of the current models appeal to me due to their size.

Better to sell some than none?

 

[Theinsanegamer]

The thing with mini buyers (myself included) is that if you take that away, you're not going to convert us into iphone/pro/plus/promax buyers. You're just losing the mini customers altogether. Mini may not have topped any sales charts, but it taps into a largely unique customer base that actually wants reasonably sized phones. None of the current models appeal to me due to their size.

Better to sell some than none?

That's great an all, but sales numbers dont lie. The mini made up three (3) % of iphone 13 sales. That's why they dropped it.

https://www.macrumors.com/2022/04/21/iphone-13-mini-unpopular-march-quarter/

Even with poor sales the 14 plus is selling more then the mini did. The mini will likely become a once every 2-3 year option again.

The differences are overstated, including the battery life and processor. The refresh rate isn't going to matter to most people, and the camera differences aren't either (though these two actually are distinguishable between the two phones). The longer software support matters to people who'll keep the phone for 5 years, which is nowhere close to a majority of people buying this phone. So as long as you don't care about having a 60Hz screen or a camera that's better in super unfavorable conditions, then spending the extra $200 is actually a waste of money.

That's a lot of rationalization for why your list of dislikes represent the majority. The cameras are a selling point to younger people who dont have a sperate camera, and that 120hz screen "looks smoother" in person. Smoother = faster to most.

The reason Apple is cutting production is because they always have the maximum demand right when a phone comes out. I'm pretty sure this has been underreported in previous years. I don't know the average reduction of production post-product ramp as a percent of initial production, but I'm all ears.

That's blatantly false, you can look through any previous year's sales statements and see apple's sales didnt drop off 90% in a single quarter. Ever. Please, go find an example of an iphone barely selling after its first few weeks on the market.

 

[AlexIL]

Clearly, you haven't seen ANY sales charts. The minis don't sell, period. It's not Apple's fault, that's customer demand (lack of).

Throw these charts out the window. I am seeing something entirely else on the ground.

 

[GoldenGoat]

This is the phone I would have got if inflation didn't eat my lunch. Releasing it a couple weeks later probably didn't help. A lot of people probably didn't want to wait for the bigger size when it also costs more. I have an iphone 11 non-pro and I think it's still fine. I would like a bigger screen and don't care about the better camera or faster processor in the pro. $900 for something I don't need isn't that doable right now though.

 

[kiwigraeme]

The thing with mini buyers (myself included) is that if you take that away, you're not going to convert us into iphone/pro/plus/promax buyers. You're just losing the mini customers altogether. Mini may not have topped any sales charts, but it taps into a largely unique customer base that actually wants reasonably sized phones. None of the current models appeal to me due to their size.

Better to sell some than none?

My guess is mini buyers - are not what Apple wants - probably low app buyers ( eg games ) - they know what they want - and don't need a new Iphone every other year .
Ie the are going to be much harder to fleece like regular Isheep

yes I am highly biased and don't like Apple - but my point holds - mini buyers are probably sensible , practicable people - they don't replace phones needlessly - all Meat no Fleece kind of Sheep

 

[DSirius]

Wow, it seems that peoples did not buy that crap "Dynamic island" as an "innovation" when in fact is only masking the big ugly notch which break the screen.

 

[MaxSmarties]

Hopefully this will happen to every iphone in the lineup. It is time for the manufacturers to realize people don't want to invest that amount of money in a smartphone. Now the world has different priorities...